The activities of Pirelli and the development of its industrial presence in Romania where illustrated to the President of Romania, Traian Basescu, by the Chairman of Pirelli, Marco Tronchetti Provera, during a meeting held today in Bucharest and following yesterday’s visit by Prime Minister Emil Boc to the Italian group’s industrial hub in Slatina. The CEO of Pirelli Tyre, Francesco Gori, and the Italian ambassador to Romania, Mario Cospito, were also present at the meeting.

Pirelli has been in Romania since 2005 and by 2010 had already invested 300 million euros. This will climb to 450 million euros by 2014, also as a result of the planned expansion of the tyre factory in Slatina which, as a sign of the deep relationship with Romanian institutions, also includes a financial contribution from the government.

President Basescu was also shown the many social and cultural activities undertaken by the Pirelli Group in the country. These include a partnership with the University of Craiova in the area of technological innovation, the promotion of Italian culture in Slatina, support for the cooperation between Milan’s Niguarda hospital and Slatina’s, as well as the InterCampus initiative with FC Internazionale Milano.

Over 450 million euros of investment by the group in the country between 2005 and 2014

The Prime Minister of Romania, Emil Boc, inaugurated the extension of the tyre factory in Slatina, accompanied by the Chairman of Pirelli, Marco Tronchetti Provera, and the Italian ambassador in Bucharest Mario Cospito. At the inauguration, along with the Romanian government delegation, composed of Secretary of State for Finances Bogdan Dargoi, Secretary of State for the Economy Karoly Borbely, regional prefect Olt Leonid Moisiu and the mayor of Slatina Darius Valcov, the event also saw the participation of Pirelli Tyre CEO Francesco Gori, director of operations Giovanni Pomati and director general of Pirelli Tyres Romania, Giuseppe Cangelosi.

Between 2005, the year of its arrival in Romania, and 2010, Pirelli invested 300 million euros, which will climb to over 450 million euros by 2014, in the industrial hub at Slatina which includes a factory for car tyres and a factory for the production of steelcord (the metallic ribbon used in radial tyres) and in Bumbesti Jiu-Gorj where there is a factory for anti-particulate filters for diesel engines.

Of the investment, 160 million euros are destined to the planned extension of the tyre factory – begun in 2008 and to be concluded in 2013 – with the aim of increasing production capacity and enhancing Pirelli overall competitiveness in Europe. The extension project received the support of of the Romanian government through funding of approximately 28 million euros, as foreseen by the governmental order HG 1165/2007 within the context of Pirelli’s cooperation with the Romanian government.

Thanks to additional investments, the car tyre factory in Slatina will see its annual production rise from the 7 million pieces expected at the end of 2011 to 10 million pieces by the end of the extension project and the extension of its area, initially 100,000 square metres and already today grown to 160,000 square metres, will increase to 175,000 square metres. The Slatina tyre factory, already one of the most modern car tyres factories, will become Pirelli’s biggest car factory. It has been equipped with the highest non-robotic production technology for the production of premium tyres, the segment in which Pirelli is a leader: Winter, Uhp Winter, High-Performance, Ultra-High-Performance, Runflat and SUV.

Today the Slatina hub employs 2,400 people between tyre and steelcord activities, and this is destined to grow to 2,700 by the end of the project thanks to 1,000 new hires, of which 70% have already been made, linked to the extension investment.

Beginning from 2005, the Italian group has made industrial investments in different provinces of Romania and has signed agreements in scientific research, professional training and the social development of the territory.

During today’s conference, chairman Tronchetti Provera illustrated for prime minister Boc the numerous social and cultural activities launched by Pirelli in Romania, from the partnership with the University of Craiova in the area of technological innovation, to the project for the dissemination of Italian culture in Slatina, from support for the cooperation between Milan’s Niguarda hospital and Slatina’s to the InterCampus initiative with FC Internazionale Milano, a project dedicated to children from different social backgrounds.

“Prime Minister Boc’s visit is for Pirelli a source of pride and shows the deep relationship that exists between our group and the government and local institutions. From 2005 to today, Pirelli has become a significant presence in Romania, which for Pirelli is an important source of productive processes and products of excellence not only for the local market but also for the emerging markets of Eastern Europe”, said Pirelli chairman, Marco Tronchetti Provera.

“Romania, where we are already well established on both the industrial and social levels, is a key country for Pirelli’s worldwide growth. The car tyre and steelcord factories in Slatina constitute a point of strength in the group’s industrial strategy. The tyre facility is one of the biggest car tyre factories in the world and allows Pirelli to satisfy the market’s demands in the premium segments, which are growing at a fast pace both in Europe and the rest of the world”, added Giuseppe Cangelosi, director general of Pirelli Tyres Romania.

Pirelli & C. SpA. announces that, at the expiry of the terms set by law, there is no opposition from the company’s creditors to the operation, decided on 21 April 2011, to voluntarily reduce the company’s share capital by 32,498,345.12 euro, in accordance with article 2445 of the civil code, to attribute to net equity.

This reduction, which represents the natural completion of the operation of assignation of Prelios SpA shares (formerly Pirelli RE SpA) carried out in 2010, does not entail any reduction of company assets, as the amount of the reduction is applied to net assets with the aim of eliminating the negative reserve generated with the conclusion of the operation of assignation.

At the level of taxation, this capital reduction will not have any economic effects on shareholders.

From today, the company share capital of Pirelli & C. S.p.A. stands at 1,345,380,534.66 euros, divided into a total of 487,991.493 shares, without indication of nominal value, of which 475,740,182 (1,311,603,971.79 euros) are ordinary shares and 12,251,311 (33,776,562.87 euros) are savings shares.